Council revisits empty shop tax

FREMANTLE council is revisiting its failed plan to force landlords into paying extra rates if they leave shops empty for too long.

At last week’s council meeting city ward councillor Rachel Pemberton successfully moved a motion asking the CEO to look into applying a differential rate for the 2019/20 financial year for commercial properties that have been vacant for more than 12 months.

Back in 2013 the State Administrative Tribunal knocked out the council’s previous attempt at imposing a double-rate hit after it was appealed by then-local government minister Tony Simpson.

But with Labor now in power and advice from its lawyers that seriously gets stuck into the SAT decision, Freo’s councillors want to have another crack.

“The decision seems to fit the cliché of ‘form before substance’ and provides little guidance on what an appropriate application of section 6.33(1)(b) might be,” was the verdict on the SAT from Elisabeth Stevenson, a special counsel with the council’s lawyers McLeods.

“Fremantle is not alone, this has caused tension for main streets all around Australia for a long time.

“The Fremantle Chamber of Commerce is certain that a fix will only come with local government, property owners, and other interested parties working it out.”

One landlord, who didn’t want to be named, said there was a fear that if they signed up a tenant in the lean years they’d miss out on better returns if the economy picked up.

But Ms Williams says the council’s 2013 double-rate attempt showed the city’s economic downturn was more than a one or two-year blip and landlords had great control over lease terms so could keep them short enough not to miss out.